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The Chance of a Comex Default...

Bob Moriarty
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Apr 19, 2016

...is zero.

So anyone telling you Comex is about to default either doesn’t have a clue as to how commodity markets work or they are deliberately lying to you.

With commodities, if it was possible for big enough players to corner a market, they could force any market into a default. So all commodity markets, no matter where they are located, have provisions for cash settlements. No commodity market can ever default no matter what the supply or demand may be. Anyone who has ever been a broker in commodities knows that. Anyone who trades commodity markets should know that. If an advisor tells you a commodity market is about to default, they don’t know what they are talking about. Or they are lying to you.

But the chance of a “Gold Derivatives Time Bomb,” is also zero. There is no such thing. And there is no such thing as a “Commercial Signal Failure” or a 400 ounce gold bar made of tungsten.

Making money in financial markets is not quite as simple as going down to your bank, plugging in your debit card and punching in a code. The financial waters are filled with sharks who want your money. Over time they have learned the best way to get your money in their pockets is to tell you what you want to hear. We wouldn’t dream of electing a politician who actually told us the truth and the same is true of investments. We give our money to the fools who tell us what we want to hear.

I have been running 321gold.com for 15 years. We deal with the best writers about financial markets in the business. I guess we have posted over 250 different writers on the site and have linked to hundreds more. I don’t post people necessarily because they are saying what I agree with. I post anyone with an opinion that might be true.

Investors are confronted with financial “noise” on a regular basis from those who want nothing more than to take your money. So before you invest you need to know the basics.

* * *

My latest book:

NOBODY KNOWS ANYTHING

INVESTING BASICS
LEARN TO IGNORE THE EXPERTS, THE GURUS AND OTHER FOOLS

I just finished such a book outlining some of the basics I think that all investors need to know. In the book I tell you about the best book I have ever read about human behavior because if you don’t understand how other people work, you will never be a successful investor.

Other basics that I feel are important but ignored by most writers include a chapter on contrarian investing, one of deviation and regression to the mean, another on Delphi Polls. I talk about bias and agendas, gurus, when to sell, the next big thing, investing on news. I ask “Does manipulation really matter?” There are certain buzz words you need to be looking for. They tell you more about the writer than what he discusses. And last but hardly least I tell you about the words that mark the end of every bubble.

If you use Kindle, the book is $4.99. If like me you insist on a paper copy, that’s an affordable $9.99 and you can have it in your hands in a few short days.

      

I think you will enjoy the book.

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Bob Moriarty
President: 321gold
Archives

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